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By law, MSF is designed to be self-supporting from premium and investment revenue. It is not funded by taxpayer dollars, but was created by the legislature to function as a self-supported insurance company conducting business in a competitive market. Because it is a public entity, Montana State Fund is subject to open meeting laws and constitutional requirements in regard to investments. However, recognizing that MSF needs to operate competitively, the legislature has granted exceptions from state pay, classification, employee leave plans, budgeting and certain purchasing requirements. MSF is attached to the executive branch of government through the Department of Administration.

In each session, there are a number of bill draft requests regarding workers' compensation issues. Many of these have to do with how benefits are determined and paid, as well as modifications to existing laws. There are a number of constituencies that are actively involved in the legislative process, including but not limited to:

Employee groups

Business organizations

Self-insured organizations

Attorneys

Insurance carriers

Medical providers

State auditor's office

Montana Department of Labor

Most laws related to workers' compensation are found in Title 39, Chapter 71, of the Montana code. Generally speaking, bills have their first hearing in either the House or Senate business and labor committee. The Department of Labor is the regulator of the workers' compensation system and its expertise is often called upon.